Infosys’ American Depositary Receipts (ADRs) slumped more than 7% on Thursday, touching an intraday low of $14.59 in early trade, while Wipro’s ADRs fell 5.4% to $2.26. The sharp decline follows a steep sell-off in IT stocks on Indian exchanges, with weakness spilling over to Wall Street.
The broader US tech rout added to the pressure, as the Nasdaq Composite dropped over 300 points, or more than 1%. Around 11:11 AM ET (9:43 PM IST), the Nasdaq was trading at 22,764.90. The S&P 500 was down 0.6% at 6,902.80, while the Dow Jones Industrial Average slipped 249.27 points, or 0.50%, to 49,872.10.
Cisco tanked 11% while heavyweights including Apple, Nvidia and IBM were down up to 6% around this time.
Earlier today, Indian benchmark indices ended with sharp cuts dragged by tech stocks. The Nifty IT index settled 5.5% lower with all 10 stocks slipping into the red.
